JAKARTA – The Indonesian government will roll out stimulus packages to boost domestic consumption in the second quarter of 2025.

Airlangga Hartarto, Coordinating Minister for Economic Affairs, said the stimulus would coincide with the school holiday period in June–July 2025.

“Several programmes being prepared are obviously aimed at encouraging growth through what can be increased via consumption,” said Airlangga in an official statement over the weekend.

First, in the transportation sector, the Indonesian government will offer discounts on public transport tickets such as trains and flights. It will also provide toll road tariff reductions, projected to benefit 110 million drivers.

Next, in the utilities sector, the government will offer electricity bill discounts of up to 50% for 79.3 million households with power capacity of 1,300 VA or less.

In the social sector, the government will increase allocations for social assistance (bansos) in the form of basic food cards and food aid, targeting 18.3 million beneficiary families.

In addition, the government will prepare wage subsidies for workers earning monthly salaries below IDR 3.5 million or the provincial minimum wage (UMP), as well as for honorary teachers.

Lastly, the government will extend the discount programme for work accident insurance (JKK) contributions for labour-intensive sector workers.

These six stimulus measures are still in the finalisation stage. The government aims to launch the stimulus package on 5 June 2025. (KR/ZH)